Recent reports indicate that shoppers are clamoring for compact cars that will help save money on gas costs, Forbes reported. While investing in smaller vehicles may help ease the pain of escalating gas prices in the short term, bigger cars will ultimately save consumers the most money.

Auto insurance rates may negate any savings that are incurred due to the size of the car.

"When you're buying a small fuel-efficient, cost-effective car, you'd be surprised to find out that the insurance is hundreds of dollars a year different than another larger choice," Amy Danise, editorial director of Insure.com, told the source.

Smaller cars, like the Honda Civic, have an annual insurance premium of over $2,000 a year while a large pick-up truck like the GMC Sierra costs about $1,121.

Insurance rates are determined by taking a number of factors into account. Location, age and the claims history on specific models can all impact premium prices. Size is also taken into account when fixing insurance rates.

The Civic, for example, is a popular car for younger drivers in biggers cities. It is a compact car which would result in extensive damage or injuries in the event of an accident, thus heightening premiums for some.